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Stock Downgrades: Time to Bid Tata Motors Goodbye

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Wall Street ratings agencies set the tone for today's stock market.

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Tesla Motors (NASDAQ:TSLA) is always aflame -- both its stock and its products -- but Tata Motors (NYSE:TTMwas once burned by a building in overcast Britain, of all places. (The Indian auto outfit owns Jaguar and, as an old joke goes, the way to instantly evacuate an entire bar in London's poshest neighborhoods is by shouting, "Nigel, your Jaguar is on fire!") Shares get bid ta-ta today, with the analyst believing shares are poised for a period of back-and-filling following a 42.66% increase in the past year, a run that saw the stock attain a historic high on April 10.
 
Yesterday stocks advanced again, thanks to Love and Other DrugsSouthwest Airlines (NYSE:LUV) advanced 1.44% as Dow Transports (INDEXDJX:DJT) hit a historic high and a frenzy of deal-making sent pharmaceutical shares surging. Novartis (NYSE:NVS) rose 1.29% to a fresh best after pocketing $5.4 billion for its animal-health division. (A latter-day Saint Francis of Assisi, the Swiss drug giant has always been particularly partial to owls. Wise up, guys.) Dermatology giant Allergan (NYSE:AGN) advanced 15.25%; clearly, Bill Ackman was sending us a coded signal when he told us late last year that "You need a thick skin to be in this business." Cannabis company GW Pharmaceuticals (NASDAQ:GWPH) jumped 32.19% on a broker boost. Moving from smoke rings to Lord of the Rings, the Gollum-look-alike manager of Manchester United (NYSE:MANU) got sacked, and that stock promptly gained 5.98%.
 
This morning in economics, March new-home sales are expected to improve from February's pace at 10:00 a.m. Eastern. Hump Day of peak week for quarterly earnings announcements is upon us, with Apple (NASDAQ:AAPL), Boeing (NYSE:BA), Facebook (NASDAQ:FB), and Procter & Gamble (NYSE:PG) among a plethora of companies releasing results.
 
Now let's turn to this morning's rating reductions, an eclectic bunch that features an insurance broker and industrial equipment outfit plus Tata Motors.

Brown & Brown (NYSE:BRO): The insurance broker is now Neutral from Buy at Compass Point, which takes its target to $33 from $36. Margin pressure is among the broker's concerns.
 
CTC Media (NASDAQ:CTCM): Credit Suisse cuts the company to Underperform from Neutral.
 
Pentair (NYSE:PNR): The industrial equipment firm gets downgraded to Neutral from Outperform with Wedbush.
 
Quality Systems (NASDAQ:QSII): Morgan Stanley moves the stock to Underweight from Equal Weight.
 
Rexnord (NYSE:RXN): Bank of America Merrill Lynch lowers its rating to Underperform from Neutral.
 
Tata Motors: Troubled by a lack of upcoming catalysts, Credit Suisse cuts the car company to Neutral from Outperform.

Also see:

New Stock Coverage: Pawn On! First Cash Financial Set for Big Payday

Stock Upgrades: Allergan Tells Ackman 'Take Two Poison Pills and Call Me in the Morning'
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No positions in stocks mentioned.
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